Pension Payment Order (PPO) to be given soon after retirement to Central Govt employees

The Centre has decided to give Pension Payment Order (PPO) to all central government employees at the time of retirement along with their other dues. This step has been taken to check the delay in disbursal of pension. Currently, the scheme for payment of pensions to central government civil pensioners is implemented through authorised banks. The scheme issued by the Central Pension Accounting Office provides for an undertaking to be submitted by the retiring government servant or pensioner to the pension disbursing bank before commencement of pension.

It has been found that the first payment of pension after retirement gets delayed mainly due to two reasons:-

Delay in receipt of intimation by the pensioner that pension papers have reached the bank.

Delay on part of the pensioner in approaching the bank for submission of undertaking.

Now, the pensioner is not required to visit the bank to activate the first payment of pension. The Ministry of Personnel has directed Office of Controller General of Accounts to instruct all Pay and Accounts Offices and all pension disbursing banks to follow its directives. There are about 30 lakh Central government pensioners.